London open: FTSE surges after Trump signals end to Iran conflict

(Sharecast News) - London stocks surged in early trade on Wednesday and oil prices fell amid hopes the Iran war could be coming to an end soon. At 0825 BST, the FTSE 100 was up 1.7% at 10,353.15. Brent crude was down 3.9% at $99.88 a barrel and West Texas Intermediate was 3.6% lower at $97.78.

Sentiment was lifted after US president Donald Trump said the war with Iran could end in two to three weeks.

Speaking to reporters at the White House on Tuesday, Trump said that "Iran doesn't have to make a deal" to end the conflict, and that the US will be "leaving very soon".

"Now we're finishing the job. I think in two weeks or maybe a few days longer, we'll do the job. We want to knock out everything they've got," he said. "When we feel that they are, for a long period of time, put into the Stone Ages and they won't be able to come up with a nuclear weapon, then we'll leave."

Trump said he will deliver an "important update on Iran" in a Wednesday night prime time address at the White House.

Richard Hunter, head of markets at Interactive Investor, said: "A coiled spring was unleashed as investors saw clear light at the end of the tunnel for an end to the hostilities in the Middle East.

"With a mountain of cash reportedly on the sidelines, investors had been waiting for a trigger to put the money to work. This was provided by the US President confirming a timeline of two to three weeks before the US retreats, leaving others to restore trading through the Strait of Hormuz. At the same time, the Iranian President was said to be open to ending the war, subject to certain guarantees."

Meanwhile, Iran's Revolutionary Guards said they would target 18 US companies in the Middle East in retaliation for attacks on Iran, as of 1 April, according to state media.

The list includes the likes of Microsoft, Google, Apple and Boeing, and the IRCG said: "These companies should expect the destruction of their respective units in exchange for each terror act in Iran, starting from 8 PM Tehran time on Wednesday, April 1st.

"We advise the employees of these institutions to immediately distance themselves from their workplaces to preserve their lives."

In equity markets, defence company Babcock shot higher after saying it had signed a six-month bridging agreement with the government to maintain continuity of Britain's naval base and nuclear submarine fleet support services under the future maritime support programme (FMSP) contract.

A new long-term agreement is in the latter stages of negotiation with the Ministry of Defence after a five-year FMSP contract ended on 31 March. Babcock said the government had signed a letter of intent alongside the bridging deal.

Engine maker Rolls-Royce also rallied after an initiation at 'overweight' by Wells Fargo.

BA and Iberia owner IAG and Wizz Air both flew higher, along with easyJet and cruise operator Carnival.

Berkeley Group slumped after saying it plans to stop buying new land as it looks "to maximise long term shareholder value by prioritising value creation" from its existing land holdings.

The company said it does not believe it can make its required rate of return on investment in new land acquisitions due to the continuous increase in the tax and regulatory burden on residential development. It reiterated guidance for FY26 pre-tax profit of £450m.

Berkeley was also in focus after an upgrade to 'sector perform' from 'underperform' at RBC Capital Markets. Barratt Redrow was upgraded to 'outperform' from 'sector perform'.

BP and Shell lost ground as oil prices retreated, along with Ithaca Energy, Harbour Energy and Diversified Energy.

Market Movers

FTSE 100 (UKX) 10,353.15 1.74% FTSE 250 (MCX) 21,685.36 2.27% techMARK (TASX) 5,702.28 1.43%

FTSE 100 - Risers

Compass Group 11 (CPG) 27.77p 33.05% Rolls-Royce Holdings (RR.) 1,224.00p 8.79% Antofagasta (ANTO) 3,569.00p 6.71% International Consolidated Airlines Group SA (CDI) (IAG) 368.50p 6.20% Babcock International Group (BAB) 1,224.00p 5.70% Barclays (BARC) 410.80p 5.54% Melrose Industries (MRO) 527.00p 4.77% St James's Place (STJ) 1,234.00p 4.72% InterContinental Hotels Group (IHG) 135.70p 4.65% Pershing Square Holdings Ltd NPV (PSH) 4,106.00p 4.61%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 3,152.00p -6.87% BP (BP.) 592.10p -2.16% Shell (SHEL) 3,531.50p -1.47% Bunzl (BNZL) 2,254.00p -0.09% British American Tobacco (BATS) 4,369.00p -0.05% Fresnillo (FRES) 3,468.00p 0.00% RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 98.64p 0.00% Admiral Group (ADM) 3,154.00p 0.00% Pearson (PSON) 990.60p 0.10% Beazley (BEZ) 1,268.00p 0.16%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 915.50p 8.30% W.A.G Payment Solutions (EWG) 113.50p 6.07% Hill and Smith (HILS) 2,210.00p 5.94% Carnival (CCL) 1,991.50p 5.92% BlackRock World Mining Trust (BRWM) 931.00p 5.68% JPMorgan Japanese Inv Trust (JFJ) 739.00p 5.55% Trustpilot Group (TRST) 203.80p 5.39% International Workplace Group (IWG) 183.20p 5.20% easyJet (EZJ) 365.50p 5.19% Allianz Technology Trust (ATT) 533.00p 5.13%

FTSE 250 - Fallers

Ithaca Energy (ITH) 244.75p -4.94% Diversified Energy Company (DI) (DEC) 1,346.00p -4.40% Harbour Energy (HBR) 286.40p -3.74% Johnson Service Group (JSG) 124.60p -2.35% Energean (ENOG) 849.00p -1.22% Currys (CURY) 128.30p -1.05% ICG Enterprise Trust (ICGT) 1,324.00p -0.60% BH Macro Ltd. GBP Shares (BHMG) 421.00p -0.12% Scottish American Inv Company (SAIN) 490.50p 0.00% XPS Pensions Group (XPS) 297.00p 0.00%